Plugging the pensions gap

pension reform

As the nation’s 76 million baby boomers approach retirement age, it’s little wonder that a yawning asset-liability mismatch in America’s pension system has become a major concern. Corporate pension plans are underfunded by around $450 billion at a time when demands on the system will only increase and contributions decline. In 2004, the government agency that insures pension schemes, the Pension Benefit Guarantee Corporation (PBGC), was itself underfunded to the tune of $23 billion—the result of